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Micro economic-649 Add in library

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(20 marks) Suppose that the market for labour is a competitive market and can be described by the following demand and supply curves: D = 60,000 – 400W S = 600W – 36,000 Where W = wage rate per hour for labour (a) (3 marks) Calculate the equilibrium wage rate and quantity of labour employed and draw a diagram to illustrate your answer. (b) (4 marks) Show on your diagram and calculate the size of the: (i) Consumer/firm surplus (ii) Producer/worker surplus (iii) Economic Surp ...

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Tags: Australia  New South Wales  Macquarie University ECON649/ECON991 Economic analysis Economic analysis for business 

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